FAQ: Levin Johnston's $18.775 Million Self-Storage Facility Sale in Fremont, California

What was the main transaction announced in this content?

Levin Johnston of Marcus & Millichap closed the $18.775 million sale of a 49,922 square-foot, 568-unit Extra Space Storage facility in Fremont, California.

Who were the parties involved in this transaction?

Levin Johnston represented the seller, a private real estate investor, and procured the buyer, an institutional self-storage developer, operator, and manager with a portfolio of over 80 properties nationwide.

Why did the seller decide to sell this self-storage property?

The seller, who had previously invested in multifamily properties, held the self-storage asset for five years and decided to leverage favorable market momentum to trade back into multifamily assets supported by the Bay Area’s strong economic base.

What made this property attractive to the buyer?

The buyer was attracted by the opportunity to scale its Bay Area portfolio and pursue value-add enhancements to the asset, positioning them to increase the property’s value over the long term to cater to growing demand from surrounding populations.

Where exactly is the property located and what are its key features?

The property is located at 38491 Fremont Boulevard in Fremont, California, featuring 568 units across 49,922 square feet with drive-up access for most units, controlled access gated entry, 24-hour surveillance, and available moving supplies on site.

What market factors support the demand for self-storage in this area?

The Bay Area’s 65-year-plus population is expected to grow significantly in coming years, providing a strong base population more likely to utilize self-storage facilities, and Fremont benefits from strong economic drivers from companies like Facebook and Tesla.

How did Levin Johnston add value to this transaction?

The team leveraged its extensive network of investors to create a varied and competitive buyer pool, drawing upon experience with self-storage, multifamily, and other asset-class owners seeking portfolio diversification, resulting in a higher price per square foot than recent comparables.

What transportation access does the property benefit from?

The property enjoys easy access to major transportation corridors including Interstate 680, Interstate 880, Dumbarton Bridge, ACE, Amtrak, and BART, and is located 1.5 miles from Downtown Fremont.

What does this transaction demonstrate about self-storage as an investment?

This transaction demonstrates the strength of self-storage as both an alternative and a complement to multifamily and other product types, depending on diversification and wealth-building goals for investors.